Finance short note

1. Marketing:Managingprofitable customerrelationships.
Or: Marketingis a processby whichcompaniescreate value forcustomersandbuildstrongcustomer
relationshipinordertocapture value fromcustomerinreturn.
Market: Market means customer.
Or: The setof actual and potential buyersof aproduct or service.
Market Place:Market place isphysical suchas a store you shopin.
For example,KorimullahMarket,
Maha Market, LondonPlazaetc.
Market Space:Market space is digital whenyoushoponthe internet.
For example,OLX.com
BIKROY.cometc.
Needs:Humanneedsare statesof feltdeprivation.Itincludesbasic physical needsforfood,clothing,
warmth,safetyandso forth.
Wants: Wantsare the form of human needstake astheyare shapedbyculture andindividual
personality.
For example,A Bangladeshineedsfood (rice,fish) butwantsasimple mobilephone,colorTV
and a softdrink.
Demands:Humanwantsthat are backedby buyingpower.
For example, youwantamotorbike andyouhave the abilitytobuyit.
Exchange:The act of obtainingadesiredobjectfromsomeonebyofferingsomethinginreturn.
Service:Some sorts of benefitswhichwe getbyusinga product
Or: Anyactivitiesorbenefitsthatone partycan offerstoanotherthat is essentiallyintangible anddoes
not resultinthe ownershipof anything
For example,Airline,Hotel,Banking,
Transportation,Salon,Hospital,Teachingetc.
Product:Anythingthatcan be offeredintothe marketandcan satisfyyourneeds.
For example,Rice,Pen,Brickcement,Laptopetc.
Satisfaction:The pointatwhichcustomerexpectationandproductsperformance meetwitheachother.
Value:Simplyvaluemeansbenefits.
CustomerValue:Benefits/Costs.
Benefits(usinginternet +communication)

2. Costs(buyingtaka+ mental thought+physical work+ problemface)
Remarketing:Marketingtoreduce demandtemporarilyorpermanently.The aimisnotbe destroy
demandbutonlyto reduce onshiftit.
Vision:Visionisknownasdreamof an organization.Thatisintangible andremainsintoheartormind.
Visionfocusonfuture andalsocalledsurvivingpowerof anorganization.
For example,where we wanttogo?
Mission:Missionisdefinedasthe organizationspurpose.Alsodescribe presentsituation.Thatshouldbe
realisticandspecific.
For example,whatisourbusiness?
Where we are now?
Market Share
Goal: Anobservable andmeasurableendresulthavingone ormore objective tobe achievedwithina
more or lesstime frame.
Objective:A specificresultthatapersonor organizationaimstoachieve withinatimeframe andwith
available resources.
For example,Minimizingexpenses
Maximizingprofits
BusinessPortfolio:Itmeansthe collectionof businessandproductsthatmake up the company.
For example,Akij cement
SPA mineral water
Mojo Lemonsoftdrink
SpeedEnergyDrink
Portfolio:Meansdifferentbusinessinvestment.
Or: Portfolioiscompetitorgroupof assets.
EfficientPortfolio:EfficientPortfolioisportfoliothatmaximizesreturnforgivenlevel of riskor
minimizes riskforgivenlevel of return.
OperationManagement:Operationmanagementreferstothe processesthatproduce goodsand
servicesthatpeople use.
Or: Operationmanagementreferstothe directionandcontrol plantof processeswithinanorganization.
Process:A processis an activitiesoragroup of activitiesthathelptotransferinputintooutput.
Finance:Finance isconcernwithprocess(documentfill up) institutions(likesbank) instruments
(documentcheck) andmarketsinvolvedtransferof moneyamongindividualsbusinessandgovernment.

3. Financial Market:Financial marketisthe marketwhichsuppliersof the firm demandersof the firmcan
transact businessdirectly.
Supplier:Who’spersonhave savinginthe bank.
Demander:whose personhave deficitinthe bank.
MoneyMarket: Moneymarketis a place where banksdeal inshort-termloaninthe formof commercial
billsandtreasurybills.Itactsas a linkbetweenthe depositorandborrower.More secure.Maturitydate
of repaymentmayafter1 hour to90 days.Main dealerare commercial bankslike, SBI,ICICI,UTI,LCIand
othersfinancial institutions.Short-termcreditrequiredforsmall investment.Close relatedwithcentral
bank.
Capital Market:Capital marketisa place where brokersdeal inlong-termdebtandequitycapital inthe
formof debenture,sharesandpublicdeposits.Itactsas a middlemanbetweenthe investorand
entrepreneur.Highrisksandhighreturns.Loansare givenfor5 to 20 years.Main dealerare all private
and publicltd.comandmore than30 millioninvestors.Long-termcreditrequiredtoestablishbusiness,
expandbusiness.Indirectrelatedwiththe central bankandfluctuationsdependingonthe policiesof
central banks.
PresentValue:The currentdollarvalue of afuture amount.The amountof moneythat wouldhasto be
investedtodayata giveninterestrate overaspecifiedperiodtoequal the future amount.PV follows
discountingtechniques.There are negativerelationwithtimeperiodandinterestrate.
Equation,PV= 𝐹𝑉 ÷ (1 + 𝑟) 𝑛
Future Value:The value ata givenfuture date of an amountplacedondeposittodayandearning
interestata specifiedrate.FV followscompoundingtechniques.There are apositive relationwithtime
periodandinterestrate.
Equation, 𝐹𝑉 = 𝑃𝑉 × (1 + 𝑟) 𝑛
Annuity:Seriesof equal cashflow.
These are two types,1) OrdinaryAnnuity 2) AnnuityDue
OrdinaryAnnuity:Cashflowoccursat the endof eachperiod.
Example,if youcan depositin December,youdoesn’tgetbenefitsorinterestfromthere.
AnnuityDue:Cashflowoccursat the beginningof eachperiod.
Example,if youcandepositinJanuary,yougetbenefitsorinterestfromthere.
BrokerMarket: Buyerand Sellerare broughttotrade securities.Brokermarketconsistsof national and
regional securitiesexchange.
DealerMarket:Buyerand Sellernotbroughttogather directly.
Dealermarketconsisttwotypes,1) NasdagMarket 2) Over-the-counterMarket

4. MixedStream:Unequal cashfollow.
Human Resource:HRas a whole consistingof interdependent,interacting,inter-related,psychological,
physiological,social,andethical componentsof anorganization.
Management:Managementismaintaininganenvironmentinwhichindividual worktogetherefficiently
and effectivelytoachieve aparticulargoal or objective inanorganization.
Human Resource Management:HRMis fieldof managementfunctioninvolved withprocurement,
(achieve something) development,(require trainingforachievingmostefficientlyandeffectively)
compensation(benefits) integrationandseparationof humanresourcesatthe endthroughwhich
organizational goal canbe achieved.
Line Manager Function:
Appointnewemployees
Trainingnewemployees
controllinglaborcost
give placementtonewemployees
Transferof employeestootherbranches
Staff Manager Function:
Consultwithnewemployees
Assistinevaluatingemployeesperformances
Use specialization fordevelopmentof anorganization
Solve the conflictbetweenworkers/employees
Co-ordinate employeesindifferentbranches
Discrimination:Discriminationisdefinedasdistinguishingdifferencesbetweenthingsortreating
someone asinferiorbasedontheirrace,sex,national origin,age,orothercharacteristics.